Darling Ingredients Inc. Reports Third Quarter 2024 Results
Third Quarter 2024
- Net income of
$16.9 million , or$0.11 per GAAP diluted share - Total net sales of
$1.4 billion - Combined adjusted EBITDA of
$236.7 million - Received
$111.2 million in cash dividends fromDiamond Green Diesel
"During the third quarter,
For the nine months ended
DGD sold 316.6 million gallons of renewable diesel for the third quarter 2024 at an average of
Combined adjusted EBITDA for the third quarter of 2024 was
As of
For the full fiscal year,
Consolidated Operating Results
For the Three and Nine Months Ended (in thousands, except per share data, unaudited) |
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
$ Change |
|
|
|
$ Change |
||||
|
|
|
|
|
Favorable |
|
|
|
|
|
Favorable |
|
2024 |
|
2023 |
|
(Unfavorable) |
|
2024 |
|
2023 |
|
(Unfavorable) |
Net sales to third parties |
$ 1,157,075 |
|
$ 1,348,602 |
|
$ (191,527) |
|
$ 3,551,392 |
|
$ 4,233,769 |
|
$ (682,377) |
Net sales to related party - |
264,816 |
|
276,602 |
|
(11,786) |
|
746,090 |
|
940,228 |
|
(194,138) |
Total net sales |
1,421,891 |
|
1,625,204 |
|
(203,313) |
|
4,297,482 |
|
5,173,997 |
|
(876,515) |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and operating expenses (excludes |
1,108,319 |
|
1,238,733 |
|
130,414 |
|
3,353,406 |
|
3,965,408 |
|
612,002 |
(Gain)/loss on sale of assets |
251 |
|
929 |
|
678 |
|
(101) |
|
861 |
|
962 |
Selling, general and administrative expenses |
115,717 |
|
137,697 |
|
21,980 |
|
384,591 |
|
409,914 |
|
25,323 |
Restructuring and asset impairment charges |
— |
|
— |
|
— |
|
— |
|
5,420 |
|
5,420 |
Acquisition and integration costs |
218 |
|
3,430 |
|
3,212 |
|
5,402 |
|
12,158 |
|
6,756 |
Change in fair value of contingent consideration |
16,156 |
|
(5,559) |
|
(21,715) |
|
(42,215) |
|
(13,058) |
|
29,157 |
Depreciation and amortization |
123,553 |
|
125,994 |
|
2,441 |
|
375,667 |
|
364,086 |
|
(11,581) |
Total costs and expenses |
1,364,214 |
|
1,501,224 |
|
137,010 |
|
4,076,750 |
|
4,744,789 |
|
668,039 |
Equity in net income of |
2,430 |
|
54,389 |
|
(51,959) |
|
125,046 |
|
361,690 |
|
(236,644) |
Operating income |
60,107 |
|
178,369 |
|
(118,262) |
|
345,778 |
|
790,898 |
|
(445,120) |
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(66,846) |
|
(70,278) |
|
3,432 |
|
(198,947) |
|
(190,770) |
|
(8,177) |
Foreign currency gain/(loss) |
(134) |
|
845 |
|
(979) |
|
515 |
|
8,339 |
|
(7,824) |
Other income, net |
4,735 |
|
2,247 |
|
2,488 |
|
12,823 |
|
13,485 |
|
(662) |
Total other expense |
(62,245) |
|
(67,186) |
|
4,941 |
|
(185,609) |
|
(168,946) |
|
(16,663) |
Equity in net income of other unconsolidated |
3,782 |
|
1,534 |
|
2,248 |
|
9,109 |
|
3,503 |
|
5,606 |
Income from operations before income taxes |
1,644 |
|
112,717 |
|
(111,073) |
|
169,278 |
|
625,455 |
|
(456,177) |
Income tax expense/(benefit) |
(17,471) |
|
(15,364) |
|
2,107 |
|
(12,790) |
|
52,322 |
|
65,112 |
Net income |
19,115 |
|
128,081 |
|
(108,966) |
|
182,068 |
|
573,133 |
|
(391,065) |
Net income attributable to noncontrolling |
(2,166) |
|
(3,055) |
|
889 |
|
(5,096) |
|
(9,923) |
|
4,827 |
Net income attributable to Darling |
$ 16,949 |
|
$ 125,026 |
|
$ (108,077) |
|
$ 176,972 |
|
$ 563,210 |
|
$ (386,238) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share: |
$ 0.11 |
|
$ 0.78 |
|
$ (0.67) |
|
$ 1.11 |
|
$ 3.52 |
|
$ (2.41) |
Diluted income per share: |
$ 0.11 |
|
$ 0.77 |
|
$ (0.66) |
|
$ 1.10 |
|
$ 3.47 |
|
$ (2.37) |
|
|
|
|
|
|
|
|
|
|
|
|
Number of diluted common shares: |
160,991 |
|
162,425 |
|
|
|
161,534 |
|
162,537 |
|
|
Segment Financial Tables (in thousands, unaudited) |
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|
|||||
|
Feed |
Food |
Fuel |
Corporate |
Total |
Three Months Ended |
|
|
|
|
|
Total net sales |
$ 927,457 |
$ 357,292 |
$ 137,142 |
$ — |
$ 1,421,891 |
Cost of sales and operating expenses |
727,642 |
271,861 |
108,816 |
— |
1,108,319 |
Gross margin |
199,815 |
85,431 |
28,326 |
— |
313,572 |
|
|
|
|
|
|
Loss (gain) on sale of assets |
204 |
49 |
(2) |
— |
251 |
Selling, general and administrative expenses |
67,445 |
28,351 |
7,757 |
12,164 |
115,717 |
Acquisition and integration costs |
— |
— |
— |
218 |
218 |
Change in fair value of contingent consideration |
16,156 |
— |
— |
— |
16,156 |
Depreciation and amortization |
85,480 |
26,743 |
9,297 |
2,033 |
123,553 |
Equity in net income of |
— |
— |
2,430 |
— |
2,430 |
Segment operating income/(loss) |
$ 30,530 |
$ 30,288 |
$ 13,704 |
$ (14,415) |
$ 60,107 |
Equity in net income of other unconsolidated subsidiaries |
3,782 |
— |
— |
— |
3,782 |
Segment income/(loss) |
$ 34,312 |
$ 30,288 |
$ 13,704 |
$ (14,415) |
$ 63,889 |
|
|
|
|
|
|
Segment EBITDA (Non-GAAP) |
$ 132,166 |
$ 57,031 |
$ 20,571 |
$ (12,164) |
$ 197,604 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
— |
— |
39,085 |
— |
39,085 |
Combined Adjusted EBITDA (Non-GAAP) |
$ 132,166 |
$ 57,031 |
$ 59,656 |
$ (12,164) |
$ 236,689 |
|
Feed |
Food |
Fuel |
Corporate |
Total |
Three Months Ended |
|
|
|
|
|
Total net sales |
$ 1,047,796 |
$ 455,744 |
$ 121,664 |
$ — |
$ 1,625,204 |
Cost of sales and operating expenses |
804,312 |
338,208 |
96,213 |
— |
1,238,733 |
Gross margin |
243,484 |
117,536 |
25,451 |
— |
386,471 |
|
|
|
|
|
|
Loss (gain) on sale of assets |
833 |
117 |
(21) |
— |
929 |
Selling, general and administrative expenses |
80,985 |
31,463 |
5,666 |
19,583 |
137,697 |
Acquisition and integration costs |
— |
— |
— |
3,430 |
3,430 |
Change in fair value of contingent consideration |
(5,559) |
— |
— |
— |
(5,559) |
Depreciation and amortization |
88,954 |
25,418 |
9,026 |
2,596 |
125,994 |
Equity in net income of |
— |
— |
54,389 |
— |
54,389 |
Segment operating income/(loss) |
$ 78,271 |
$ 60,538 |
$ 65,169 |
$ (25,609) |
$ 178,369 |
Equity in net income of other unconsolidated subsidiaries |
1,534 |
— |
— |
— |
1,534 |
Segment income/(loss) |
$ 79,805 |
$ 60,538 |
$ 65,169 |
$ (25,609) |
$ 179,903 |
|
|
|
|
|
|
Segment EBITDA (Non-GAAP) |
$ 161,666 |
$ 85,956 |
$ 19,806 |
$ (19,583) |
$ 247,845 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
— |
— |
86,450 |
— |
86,450 |
Combined Adjusted EBITDA (Non-GAAP) |
$ 161,666 |
$ 85,956 |
$ 106,256 |
$ (19,583) |
$ 334,295 |
Segment EBITDA consists of segment income (loss), less equity in net income from unconsolidated subsidiaries, less equity in net income of
|
Feed |
Food |
Fuel |
Corporate |
Total |
Nine Months Ended |
|
|
|
|
|
Total net sales |
$ 2,751,452 |
$ 1,127,415 |
$ 418,615 |
$ — |
$ 4,297,482 |
Cost of sales and operating expenses |
2,171,282 |
846,766 |
335,358 |
— |
3,353,406 |
Gross margin |
580,170 |
280,649 |
83,257 |
— |
944,076 |
|
|
|
|
|
|
Loss (gain) on sale of assets |
541 |
(208) |
(434) |
— |
(101) |
Selling, general and administrative expenses |
218,598 |
88,939 |
24,911 |
52,143 |
384,591 |
Acquisition and integration costs |
— |
— |
— |
5,402 |
5,402 |
Change in fair value of contingent consideration |
(42,215) |
— |
— |
— |
(42,215) |
Depreciation and amortization |
259,493 |
82,983 |
26,687 |
6,504 |
375,667 |
Equity in net income of |
— |
— |
125,046 |
— |
125,046 |
Segment operating income/(loss) |
$ 143,753 |
$ 108,935 |
$ 157,139 |
$ (64,049) |
$ 345,778 |
Equity in net income of other unconsolidated subsidiaries |
9,109 |
— |
— |
— |
9,109 |
Segment income/(loss) |
$ 152,862 |
$ 108,935 |
$ 157,139 |
$ (64,049) |
$ 354,887 |
|
|
|
|
|
|
Segment EBITDA (Non-GAAP) |
$ 361,031 |
$ 191,918 |
$ 58,780 |
$ (52,143) |
$ 559,586 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
— |
— |
230,787 |
— |
230,787 |
Combined Adjusted EBITDA (Non-GAAP) |
$ 361,031 |
$ 191,918 |
$ 289,567 |
$ (52,143) |
$ 790,373 |
|
Feed |
Food |
Fuel |
Corporate |
Total |
Nine Months Ended |
|
|
|
|
|
Total net sales |
$ 3,426,950 |
$ 1,328,229 |
$ 418,818 |
$ — |
$ 5,173,997 |
Cost of sales and operating expenses |
2,630,797 |
999,418 |
335,193 |
— |
3,965,408 |
Gross margin |
796,153 |
328,811 |
83,625 |
— |
1,208,589 |
|
|
|
|
|
|
Loss/(gain) on sale of assets |
813 |
99 |
(51) |
— |
861 |
Selling, general and administrative expenses |
233,082 |
98,269 |
16,829 |
61,734 |
409,914 |
Restructuring and asset impairment charges |
92 |
5,328 |
— |
— |
5,420 |
Acquisition and integration costs |
— |
— |
— |
12,158 |
12,158 |
Change in fair value of contingent consideration |
(13,058) |
— |
— |
— |
(13,058) |
Depreciation and amortization |
261,849 |
68,336 |
25,986 |
7,915 |
364,086 |
Equity in net income of |
— |
— |
361,690 |
— |
361,690 |
Segment operating income/(loss) |
$ 313,375 |
$ 156,779 |
$ 402,551 |
$ (81,807) |
$ 790,898 |
Equity in net income of other unconsolidated subsidiaries |
3,503 |
— |
— |
— |
3,503 |
Segment income/(loss) |
$ 316,878 |
$ 156,779 |
$ 402,551 |
$ (81,807) |
$ 794,401 |
|
|
|
|
|
|
Segment EBITDA (Non-GAAP) |
$ 562,258 |
$ 230,443 |
$ 66,847 |
$ (61,734) |
$ 797,814 |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
— |
— |
463,171 |
— |
463,171 |
Combined Adjusted EBITDA (Non-GAAP) |
$ 562,258 |
$ 230,443 |
$ 530,018 |
$ (61,734) |
$ 1,260,985 |
Segment EBITDA consists of segment income (loss), less equity in net income from unconsolidated subsidiaries, less equity in net income of
Balance Sheet Disclosures
As of (in thousands) |
|||
|
|
||
|
(unaudited) |
|
|
|
|
|
|
|
2024 |
|
2023 |
Cash and cash equivalents |
$ 114,778 |
|
$ 126,502 |
Property, plant and equipment, net |
$ 2,856,229 |
|
$ 2,935,185 |
Current portion of long-term debt |
$ 114,326 |
|
$ 60,703 |
Long-term debt, net of current portion |
$ 4,131,891 |
|
$ 4,366,370 |
|
|
|
|
|
|
|
|
Other Financial Data |
|||
As of |
|||
|
|||
|
(unaudited) |
|
|
|
|
|
|
|
2024 |
|
|
Revolver availability |
$ 1,008,322 |
|
|
Capital expenditures - YTD |
$ 259,133 |
|
|
Projected Leverage Ratio |
4.04x |
|
|
Diamond Green Diesel Joint Venture Operating Financial Results
For the Three and Nine Months Ended (in thousands, unaudited) |
|||||||||||
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
$ Change |
|
|
|
$ Change |
||||
|
|
|
|
|
Favorable |
|
|
|
|
|
Favorable |
|
2024 |
|
2023 |
|
(Unfavorable) |
|
2024 |
|
2023 |
|
(Unfavorable) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
$ 1,224,679 |
|
$ 1,430,666 |
|
$ (205,987) |
|
$ 3,819,870 |
|
$ 5,356,827 |
|
$ (1,536,957) |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses less |
1,126,200 |
|
1,257,766 |
|
131,566 |
|
3,300,483 |
|
4,430,485 |
|
1,130,002 |
Lower of cost or market (LCM) |
20,310 |
|
— |
|
(20,310) |
|
57,814 |
|
— |
|
(57,814) |
Depreciation, amortization and |
68,303 |
|
55,118 |
|
(13,185) |
|
195,503 |
|
172,040 |
|
(23,463) |
Total costs and expenses |
1,214,813 |
|
1,312,884 |
|
98,071 |
|
3,553,800 |
|
4,602,525 |
|
1,048,725 |
Operating income |
9,866 |
|
117,782 |
|
(107,916) |
|
266,070 |
|
754,302 |
|
(488,232) |
Other income |
5,058 |
|
2,701 |
|
2,357 |
|
14,336 |
|
6,863 |
|
7,473 |
Interest and debt expense, net |
(10,093) |
|
(11,705) |
|
1,612 |
|
(30,372) |
|
(37,785) |
|
7,413 |
Income before income tax expense |
4,831 |
|
108,778 |
|
(103,947) |
|
250,034 |
|
723,380 |
|
(473,346) |
Income tax benefit |
$ (29) |
|
$ — |
|
29 |
|
$ (58) |
|
$ — |
|
58 |
Net income |
$ 4,860 |
|
$ 108,778 |
|
$ (103,918) |
|
$ 250,092 |
|
$ 723,380 |
|
$ (473,288) |
Diamond Green Diesel Joint Venture Consolidated Balance Sheets
(in thousands) |
|||
|
|||
|
|
|
|
|
2024 |
|
2023 |
|
(unaudited) |
|
|
Assets: |
|
|
|
Cash |
$ 195,666 |
|
$ 236,794 |
Total other current assets |
1,472,709 |
|
1,640,636 |
Property, plant and equipment, net |
3,886,783 |
|
3,838,800 |
Other assets |
104,317 |
|
89,697 |
Total assets |
$ 5,659,475 |
|
$ 5,805,927 |
|
|
|
|
Liabilities and members' equity: |
|
|
|
Revolver |
$ — |
|
$ 250,000 |
Total other current portion of long term debt |
29,496 |
|
28,639 |
Total other current liabilities |
384,496 |
|
417,918 |
Total long term debt |
714,783 |
|
737,097 |
Total other long term liabilities |
17,043 |
|
16,996 |
Total members' equity |
4,513,657 |
|
4,355,277 |
Total liabilities and members' equity |
$ 5,659,475 |
|
$ 5,805,927 |
Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA to Foreign Currency
For the Three and Nine Months Ended (in thousands, unaudited) |
|
|||||||
|
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
|
||||
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
( |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Darling |
16,949 |
|
125,026 |
|
176,972 |
|
563,210 |
|
Depreciation and amortization |
123,553 |
|
125,994 |
|
375,667 |
|
364,086 |
|
Interest expense |
66,846 |
|
70,278 |
|
198,947 |
|
190,770 |
|
Income tax expense (benefit) |
(17,471) |
|
(15,364) |
|
(12,790) |
|
52,322 |
|
Restructuring and asset impairment charges |
— |
|
— |
|
— |
|
5,420 |
|
Acquisition and integration costs |
218 |
|
3,430 |
|
5,402 |
|
12,158 |
|
Change in fair value of contingent consideration |
16,156 |
|
(5,559) |
|
(42,215) |
|
(13,058) |
|
Foreign currency loss/(gain) |
134 |
|
(845) |
|
(515) |
|
(8,339) |
|
Other income, net |
(4,735) |
|
(2,247) |
|
(12,823) |
|
(13,485) |
|
Equity in net income of |
(2,430) |
|
(54,389) |
|
(125,046) |
|
(361,690) |
|
Equity in net income of other unconsolidated subsidiaries |
(3,782) |
|
(1,534) |
|
(9,109) |
|
(3,503) |
|
Net income attributable to noncontrolling interests |
2,166 |
|
3,055 |
|
5,096 |
|
9,923 |
|
Adjusted EBITDA (Non-GAAP) |
$ 197,604 |
|
$ 247,845 |
|
$ 559,586 |
|
$ 797,814 |
|
Foreign currency exchange impact |
(601) |
(1) |
— |
|
(76) |
(2) |
— |
|
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) |
$ 197,003 |
|
$ 247,845 |
|
$ 559,510 |
|
$ 797,814 |
|
DGD Joint Venture Adjusted EBITDA (Darling's share) (Non-GAAP) |
$ 39,085 |
|
$ 86,450 |
|
$ 230,787 |
|
$ 463,171 |
|
Combined Adjusted EBITDA (Non-GAAP) |
$ 236,689 |
|
$ 334,295 |
|
$ 790,373 |
|
$ 1,260,985 |
|
|
|
|
|
|
|
|
|
|
(1) The average rates for the three months ended |
||||||||
(2) The average rates for the nine months ended |
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Use of Non-GAAP Financial Measures:
Segment EBITDA
is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to segment income (loss), as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to segment income (loss), but rather as a measure of the segment's operating performance. Segment EBITDA consists of segment income (loss), less equity in net income from unconsolidated subsidiaries, less equity in net income of
Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated above and represents for any relevant period, net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to non-controlling interests, interest expense, income tax provision, other income/(expense) and equity in net (income)/loss of unconsolidated subsidiaries. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.
The Company's management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company's Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 3.625% Notes that were outstanding at
Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Management believes Pro forma Adjusted EBITDA to Foreign Currency is useful in evaluating the Company's operating performance on a constant currency basis and also believes this information is useful to investors.
DGD Joint Venture Adjusted EBITDA (Darling's share)
is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency. DGD Joint Venture Adjusted EBITDA (Darling's share) is not a recognized accounting measure under GAAP; it should not be considered as an alternative to net income or equity in net income of
Combined Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Combined Adjusted EBITDA consists of Adjusted EBITDA plus DGD Joint Venture Adjusted EBITDA (Darling's share). Management believes that Combined Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.
Information reconciling forward-looking Combined Adjusted EBITDA to net income is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Combined Adjusted EBITDA to net income because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted, such as the impact of volatile commodity prices on the Company's operations, impact of foreign currency exchange fluctuations, depreciation and amortization and the provision for income taxes. Preparation of such reconciliations for
EBITDA per gallon
is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income or equity in income of
Cautionary Statements Regarding Forward-Looking Information:
This media release includes "forward-looking" statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "guidance," "outlook," "project," "planned," "contemplate," "potential," "possible," "proposed," "intend," "believe," "anticipate," "expect," "may," "will," "would," "should," "could," and similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts included in this release are forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company's control.
Important factors that could cause actual results to differ materially from the Company's expectations include: existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; reduced demands or prices for biofuels, biogases or renewable electricity; global demands for grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company's products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand, reduced volume due to government regulations affecting animal production or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat, used cooking oil, protein or collagen (including, without limitation, collagen peptides and gelatin) finished product prices; changes to government policies around the world relating to renewable fuels and greenhouse gas ("GHG") emissions that adversely affect prices, margins or markets (including for the DGD Joint Venture), including programs like the renewable fuel standards, low carbon fuel standards ("LCFS"), renewable fuel mandates and tax credits for biofuels, or loss or diminishment of tax credits due to failure to satisfy any eligibility requirements, including, without limitation, in relation to the blender tax credit or the Clean Fuels Production Credit ("CFPC"); climate related adverse results, including with respect to the Company's climate goals, targets or commitments; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives or products which do not meet specifications, contract requirements or regulatory standards; the occurrence of 2009 H1N1 flu (initially known as "Swine Flu"), highly pathogenic strains of avian influenza (collectively known as "Bird Flu"), severe acute respiratory syndrome ("SARS"), bovine spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the
Darling Ingredients Contacts |
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Investors: |
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Senior VP, Investor Relations, |
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(469) 214-8202; suann.guthrie@darlingii.com |
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Media: |
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Director, |
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(972) 541-7115; jillian.fleming@darlingii.com |
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